guest: because of the rate structure. the rate between $200,000 and $500,000 are at least as high, and if not higher. your capital gain an income tax are subject to a 22% effective tax rate. if you're making more than $1 million, they're subject to a 15% rate. you have this weird double break. it raises a lot of money, but in a fairly arbitrary fashion. host: philip. michigan. democratic caller. caller: thank you. this is not so much a tax question. i used to work for a food company in 1972 that was very large, employing 3000 or more, closing in 1985. people here have lost their jobs. why does the government not do something to cut their jobs? for instance, do we really need the cia, the federal marshals here and there? why do they not get the federal bureau to cover everything? host: that is philip's idea. on twitter, a follow-up with the small-business owner we heard from, saying they eliminated business averaging which is hopeful to small businesses with fluctuating income. guest: it guest: under income averaging, if y